Introduction to Warehouse Management System

Warehouse Management System or WMSA warehouse management system (WMS) is a key part of the supply chain and primarily aims to control the movement and storage of materials within a warehouse and process the associated transactions, including shipping, receiving, put-away and picking. The systems also direct and optimize stock put-away based on real-time information about the status of bin utilization. A WMS monitors the progress of products through the warehouse. It involves the physical warehouse infrastructure, tracking systems, and communication between product stations. Warehouse management systems often utilize automatic identification and data capture technology, such as barcode scanners, mobile computers, wireless LANs and potentially radio-frequency identification (RFID) to efficiently monitor the flow of products. Once data has been collected, there is either a batch synchronization with, or a real-time wireless transmission to a central database. The database can then provide useful reports about the status of goods in the warehouse. BenefitsWarehouse management increases quality and efficiency Organized warehouses provide the foundation for quality and efficiency in an environment that is often fast-paced and chaotic. Strategic inventory storage decisions, enabled by a warehouse system with the flexibility to accommodate numerous inventory statuses, locations and types of ownership, give companies a distinct competitive advantage Warehouse management improves overall business operations and profitability Improved warehouse organization and accuracy enabled by warehouse management solutions allow businesses to optimize resources, leverage opportunities and improve overall business operations and profitability. Warehouse management improves decision-making Real-time, accurate inventory and warehousing information enables every member of the organization to gain the knowledge they need to make better decisions whether dealing with vendors, prospects, customers or employees. Warehouse management increases customer satisfaction Having the right products in stock for customers, properly identified and available to quickly ship to customers is the key to customer satisfaction.

Warehouse Management Warehouse management includes the control of inventory across one location or many and the associated warehouse management tasks. More precisely, warehouse management involves the receipt, storage and movement of goods, (normally finished goods), to intermediate storage locations or to a final customer. In the multi-echelon model for distribution, there may be multiple levels of warehouses. This includes a central warehouse, a regional warehouses (serviced by the central warehouse) and potentially retail warehouses (serviced by the regional warehouses)

Internal Pick/Put-AwayCreate pick and put-away orders for internal purposes, without using a source document (such as a purchase order or a sales order). For example, pick items for testing or put away production output. The employee creates an internal put-away for items that have to be put away in the warehouse (for example, production output), and enters quantity, zone and bin; from where the items should be put away. The employee releases the internal put-away and the program creates an internal put-away request. Receive and put away items in a bin; pick items from a bin according to a put-away template; and pick items based on the zone and bin ranking. Move items between bins using a report for optimizing the space usage and the picking process or move items manually. Warehouse instruction documents are created for the pick and put-away process, which can be carried out for sales, purchase, transfers, returns, and production orders. Service Orders is not included. To effectively use this granule, it is recommended that you also purchase the Put Away, Warehouse Receipt, Pick, and Warehouse Shipment granules.

Evolution of Warehouse Management

Introduction- warehouse management consisted of manual processes written down on paper. With the emergence of new technologies and ideas, warehouse management has evolved into a much more automated process. Today, the primary focus of warehouse management is to manage the movement and storage of inventory and other materials within warehouse environments. To control the flow of inventory into, out of and within a companys distribution center, many companies have adopted warehouse management solutions. Over the past few decades, warehouse management solutions have evolved from complex systems that required special skills to operate and maintain the system to automated systems that do not require extensive training. Todays warehouse management systems are much more affordable than systems of the past, much more convenient to use, and much more beneficial to companies. Warehouse management systems now tie into other systems used by the organization, resulting in faster response and delivery times as well as improved visibility. Todays systems also work to automate warehouse processes and increase production efficiency so companies can focus their attention elsewhere. Do We Really Need this Warehouse System? Not every warehouse needs a WMS. Certainly any warehouse could benefit from some of the functionality but is the benefit great enough to justify the initial and ongoing costs associated with WMS? Warehouse Management Systems are big, complex, data intensive, applications. They tend to require a lot of initial setup, a lot of system resources to run, and a lot of ongoing data management to continue to run. Thats right, you need to "manage" your warehouse "management" system. An often time, large operations will end up creating a new IS department with the sole responsibility of managing the WMS. The Claims

WMS will reduce inventory! WMS will reduce labor costs! WMS will increase storage capacity! WMS will increase customer service! WMS will increase inventory accuracy!

The implementation of a WMS along with automated data collection will likely give you increases in accuracy, reduction in labor costs (provided the labor required to maintain the system is less than the labor saved on the warehouse floor), and a greater ability to service the customer by reducing cycle times. Expectations of inventory reduction and increased storage capacity are less likely. While increased accuracy and efficiencies in the receiving process may reduce the level of safety stock required, the impact of this reduction will likely be

negligible in comparison to overall inventory levels. The predominant factors that control inventory levels are lot sizing, lead times, and demand variability. It is unlikely that a WMS will have a significant impact on any of these factors. And while a WMS certainly provides the tools for more organized storage which may result in increased storage capacity, this improvement will be relative to just how sloppy your pre-WMS processes were. Set upThe setup requirements of WMS can be extensive. The characteristics of each item and location must be maintained either at the detail level or by grouping similar items and locations into categories. An example of item characteristics at the detail level would include exact dimensions and weight of each item in each unit of measure the item is stocked as well as information such as whether it can be mixed with other items in a location, whether it is rack able, max stack height, max quantity per location, hazard classifications, finished goods or raw material, fast versus slow mover, etc. Although some operations will need to set up each item this way, most operations will benefit by creating groups of similar products. For example, if you are a distributor of music CDs you would create groups for single CDs, and double CDs, maintaining the detailed dimension and weight information at the group level and only need to attach the group code to each item. You would likely need to maintain detailed information on special items such as boxed sets or CDs in special packaging. You would also create groups for the different types of locations within your warehouse. An example would be to create three different groups (P1, P2, P3) for the three different sized forward picking locations you use for your CD picking. You then set up the quantity of single CDs that will fit in a P1, P2, and P3 location, quantity of double CDs that fit in a P1, P2, P3 location etc. You would likely also be setting up case quantities, and pallet quantities of each CD group and quantities of cases and pallets per each reserve storage location group. Location SequenceThis is the simplest logic; you simply define a flow through your warehouse and assign a sequence number to each location. In order picking this is used to sequence your picks to flow through the warehouse, in put away the logic would look for the first location in the sequence in which the product would fit. Zone Logic- By breaking down your storage locations into zones you can direct picking, put away, or replenishment to or from specific areas of your warehouse. Since zone logic only designates an area, you will need to combine this with some other type of logic to determine exact location within the zone. Fixed Location- Logic uses predetermined fixed locations per item in picking, put away, and replenishment. Fixed locations are most often used as the primary picking location in piece pick and case-pick operations; however, they can also be used for secondary storage. Random Location- Since computers cannot be truly random (nor would you want them to be) the term random location is a little misleading. Random locations generally refer to areas

where products are not stored in designated fixed locations. Like zone logic, you will need some additional logic to determine exact locations. First-in-first-out (FIFO)- Directs picking from the oldest inventory first. Last-in-first-out (LIFO)- Opposite of FIFO. I didn't think there were any real applications for this logic until a visitor to my site sent an email describing their operation that distributes perishable goods domestically and overseas. They use LIFO for their overseas customers (because of longer in-transit times) and FIFO for their domestic customers. Quantity or Unit-of-measure- Allows you to direct picking from different locations of the same item based upon the quantity or unit-of-measured ordered. For example, pick quantities less than 25 units would pick directly from the primary picking location while quantities greater than 25 would pick from reserve storage locations. Fewest Locations- This logic is used primarily for productivity. Pick-from-fewest logic will use quantity information to determine least number of locations needed to pick the entire pick quantity. Put-to-fewest logic will attempt to direct putaway to the fewest number of locations needed to stock the entire quantity. While this logic sounds great from a productivity standpoint, it generally results in very poor space utilization. The pick-from-fewest logic will leave small quantities of an item scattered all over your warehouse, and the put-to-fewest logic will ignore small and partially used locations. Pick-to-clear- Logic directs picking to the locations with the smallest quantities on hand. This logic is great for space utilization. Reserved Locations- This is used when you want to predetermine specific locations to putaway to or pick from. An application for reserved locations would be cross-docking, where you may specify certain quantities of an inbound shipment be moved to specific outbound staging locations or directly to an awaiting outbound trailer. Nearest Location- Also called proximity picking/put-away, this logic looks to the closest available location to that of the previous put-away or pick. You need to look at the setup and test this type of logic to verify that it is picking the shortest route and not the actual nearest location. Since the shortest distance between two points is a straight line, this logic may pick a location 30 feet away (thinking its closest) that requires the worker to travel 200 feet up and down aisles to get to it while there was another available location 50 feet away in the same aisle (50 is longer than 30). Lot Sequence- Used for picking or replenishment, this will use the lot number or lot date to determine locations to pick from or replenish from.

Other Functionality/Considerations of Warehouse Management

Wave Picking/Batch Picking/Zone PickingSupport for various picking methods varies from one system to another. In high-volume fulfilment operations, picking logic can be a critical factor in WMS selection.

Batch picking / Multi-order picking In batch picking- multiple orders are grouped into small batches. An order picker will pick all orders within the batch in one pass using a consolidated pick list. Usually the picker will use a multi-tiered picking cart maintaining a separate tote or carton on the cart for each order. Batch sizes usually run from 4 to 12 orders per batch depending on the average picks per order in that specific operation. Batch picking systems may use extensive logic programmed to consolidate orders with the same items. In operations with low picks per order, batch picking can greatly reduce travel time by allowing the picker to make additional picks while in the same area. Since you are picking multiple orders at the same time, systems and procedures will be required to prevent mixing of orders. In very busy operations, batch picking is often used in conjunction with zone picking and automated material handling equipment. In order to get maximum productivity in batch pick operations, orders must be accumulated in the system until there are enough similar picks to create the batches. This delay in processing may not be acceptable in same day shipping operations. Zone picking- Zone picking is the order picking version of the assembly line. In zone picking, the picking area is broken up into individual pick zones. Order pickers are assigned a specific zone, and only pick items within that zone. Orders are moved from one zone to the next as the picking from the previous zone is completed (also known as "pick-and-pass"). Usually, conveyor systems are used to move orders from zone to zone. In zone picking its important to balance the number of picks from zone to zone to maintain a consistent flow. Zones are usually sized to accommodate enough picks for one or two order pickers. Creating fast pick areas close to the conveyor is essential in achieving high productivity in zone picking. Zone picking is most effective in large operations with high total numbers of skus, high total numbers of orders, and low to moderate picks per order. Separate zones also provide for specialization of picking techniques such as having automated material handling systems in one zone and manual handling in the next.

Wave picking- A variation on zone picking and batch picking where rather than orders moving from one zone to the next for picking, all zones are picked at the same time and the items are later sorted and consolidated into individual orders/shipments. Wave picking is the quickest method (shortest cycle time) for picking multi item orders however the sorting and consolidation process can be tricky. Operations with high total number of SKUs and moderate to high picks per

order may benefit from wave picking. Wave picking may be used to isolate orders by specific carriers, routes, or zones. Automated Data Collection (ADC)It is generally assumed when you implement WMS that you will also be implementing automatic data collection, usually in the form of radio-frequency (RF) portable terminals with bar code scanners. I recommend incorporating your ADC hardware selection and your software selection into a single process. This is especially true if you are planning on incorporating alternate technologies such as voice systems, RFID, or light-directed systems. You may find that a higher priced WMS package will actually be less expensive in the end since it has a greater level of support for the types of ADC hardware you will be using. In researching WMS packages you may see references like supports, easily integrates with, works with, seamlessly interfaces with in describing the softwares functionality related to ADC. Since these statements can mean just about anything, youll find it important to ask specific questions related to exactly how the WMS system has been programmed to accommodate ADC equipment. Some WMS products have created specific versions of programs designed to interface with specific ADC devices from specific manufacturers. If this WMS/ADC device combination works for your operation you can save yourself some programming/setup time. If the WMS system does not have this specific functionality, it does not mean that you should not buy the system, it just means that you will have to do some programming either on the WMS system or on the ADC devices. Advanced Shipment Notifications (ASN)If your vendors are capable of sending advanced shipment notifications (preferably electronically) and attaching compliance labels to the shipments you will want to make sure that the WMS can use this to automate your receiving process. In addition, if you have requirements to provide ASNs for customers, you will also want to verify this functionality. Implementation Tips. As with the selection process, the implementation may also require outside assistance. Whether you use consultants from the software vendor, a business partner, or an independent firm, the implementation plan will likely be the same. Its very important to listen to your consultants and be prepared to dedicate the resources outlined in the implementation plan. A common mistake made by companies going through their first major implementation is to underestimate the complexity of their operations, the extent of system setup and testing, and the impact the implementation will have on their operation. The only things you can assume about the implementation is that it that it will be much more difficult than you expected, it will take longer than you expected, and it will cost more than you expected. the success of a software implementation will be based upon the skill of the people involved, training, planning, and the effort put forth. You should plan to have your most knowledgeable employees heavily involved in the system setup and testing.

Receiving and Shipping Operations

Problems occurring in planningProblem can occur in planning and shipping facilities if the carriers that interface with receiving and shipping activities are not properly considered. Positioning of the carriers and their characteristics are important to receiving and shipping operation. It is useful to think of the carriers that interface with the receiving and shipping functions as a portion of receiving and shipping facility. Hence, all carrier activities on the site are included in receiving and shipping facility planning. Cross-dockingIn its purest form cross-docking is the action of unloading materials from an incoming trailer or rail car and immediately loading these materials in outbound trailers or rail cars thus eliminating the need for warehousing (storage). In reality pure cross-docking is less common; most "cross-docking" operations require large staging areas where inbound materials are sorted, consolidated, and stored until the outbound shipment is complete and ready to ship. If cross docking is part of your operation you will need to verify the logic the WMS uses to facilitate this World Class WarehousingHomeshop18 has become one of the most trusted names in providing the most reliable Warehousing Services. The warehousing facility includes multiple loading docks with ample space for staging of materials for receiving and shipping. They know the importance of safety of freights while forwarding them to a different destination. They realize that any damage to freights can cause a significant loss to our customer. Therefore we take essential safety measures to ensure that no harm is incurred while transportation. For this purpose, they also provide warehousing services to our customers. Warehouses can safely and conveniently store Computers, Documents, Home furnishings, Antiques, Furs, Linens, Mattresses, Electronic Equipment, Musical Instruments and innumerable other stuff. Company provides the best warehousing and storage services for storing goods for a specified time frame. They provide excellent corporate warehouse facility and storage go-downs with comprehensive security at very reasonable rates. They also provide round the clock security of goods in the warehouse and all necessary support required for clients to reduce overheads, increase efficiency and cut down valuable management time. Offer our clients an advanced Warehousing services, which are appreciated for advantages like cleanliness, safety and temperature controlled. This warehouse is established by us

keeping in mind all the safety aspect so that the stored items can be protected from an unexpected damage. Spread over a large area, Our warehouse has a large storage capacity, due to which, we are able to store different items separately for the easy retrieval.

Order Picking Operations

Piece-picking methodsPiece picking, also known as broken case picking or pick/pack operations, describes systems where individual items are picked. Piece pick operations usually have a large sku base in the thousands or tens of thousands of items, small quantities per pick, and short cycle times. Mail order catalog companies and repair parts distributors are good examples of piece pick operations. Basic order picking- In the most basic order-picking method, product is stored in fixed locations on static shelving or pallet rack. An order picker picks one order at a time following a route up and down each aisle until the entire order is picked. The order picker will usually use some type of picking cart. The design of the picking flow should be such that the order picker ends up fairly close to the original starting point. The picking document should have the picks sorted in the same sequence as the picking flow. Fast moving product should be stored close to the main cross aisle and additional cross aisles put in to allow short cuts. Larger bulkier items would be stored towards the end of the pick flow. This basic order picking method can work well in operations with a small total number of orders and a high number of picks per order. Batch picking / Multi-order picking In batch picking Zone picking Wave picking

Case Picking methodsCase picking operations tend to have less diversity in product characteristics than piece picking operations, with fewer SKUs and higher picks per SKU.

Basic case-picking method. This is the most common method for case-picking operations. Rather than product stored on static shelving, case-pick operations will have the product stored in pallet rack or in bulk in floor locations. The simplest picking method is to use a hand pallet jack (or motorized pallet truck) and pick cases out of bulk floor locations however many operations will find that going to very narrow aisle (VNA) pallet racking and using man-up order selectors or turret trucks will provide high storage density and high pick rates.

Batch picking. Batch picking is rarely used in case pick operations primarily because of the physical size of the picks. You are unlikely to have enough room on a pallet to pick multiple orders.

Zone picking. Zone picking can be used in case-picking operations, however, like batch picking, the size of the picks and the size of the orders in most case-pick operations do not lend themselves well to zone picking. If you do have a case pick operation where you have a large number of SKUs, and orders with small quantities per SKU, or where you have enough cases per order per zone to fill a pallet, you may find zone picking applicable.

Wave picking. Wave picking can be applied to case picking operations where you have very large orders with many picks per order and are looking for ways to reduce cycle time.

Pallet picking methodsFull-pallet-picking methodsFull-pallet picking is also known as unit-load picking. The systematic methods for full-pallet picking are much simpler that either piece pick or case pick, however, the choices in storage equipment, storage configurations, and types of lift trucks used are many Basic pallet picking- This is the most common method for full-pallet picking. Orders are picked one at a time. The order picker will use some type of lift truck, retrieve the pallet load and stage it in a shipping area in a staging lane designated for that order, or just pick and load directly into an outbound trailer or container. Batch picking- Since the nature of pallet picking is a single pick per trip, batch picking has no application in pallet-picking operations. Zone and wave picking- Although the normal definition of zone picking where an order is moved from zone to zone as picks are accumulated doesnt apply to pallet picking, pick zones are used in wave picking in pallet-picking operations. The storage area is broken into zones to eliminate multiple lift-truck operators from picking in the same aisle. The lift truck operator may pick the pallet and deliver it directly to the designated staging lane or place it on a unit-load conveyor that will deliver it to the sorting/staging area. Task interleaving- Task interleaving is a method of combining picking and putaway. WMS use logic to direct a lift truck operator to put away a pallet en route to the next pick.

Order Picking Operations in Warehouse Systems

Order picking operations in warehouse systemsOf all warehouse processes, order picking tends to get the most attention. Its just the nature of distribution and fulfilment that you generally have more outbound transactions than inbound transactions, and the labour associated with the outbound transactions is likely a big piece of the total warehouse labour budget. Another reason for the high level of importance placed on order picking operations is its direct connection to customer satisfaction. The ability to quickly and accurately process customer orders has become an essential part of doing business. The methods for order picking vary greatly and the level of difficulty in choosing the best method for your operation will depend on the type of operation you have. The characteristics of the product being handled, total number of transactions, total number of orders, picks per order, quantity per pick, picks per SKU, total number of SKUs, value-added processing such as private labelling, and whether you are handling piece pick, case pick, or full-pallet loads are all factors that will affect your decision on a method for order picking. Many times a combination of picking methods is needed to handle diverse product and order characteristics. Key objectives in designing an order picking operation include increases in productivity, reduction of cycle time, and increases in accuracy. Often times these objectives may conflict with one another in that a method that focuses on productivity may not provide a short enough cycle time or a method that focuses on accuracy may sacrifice productivity.

Key Factors In Warehouse DesignConstruction A set of typical drivers commonly affects the construction of a warehouse - the height of the building, its plot size, service requirements and structural complexity. It may be a surprise to learn aspects such as height not also affect concrete slab specifications but determine the fire fighting system required as well. Location

Selecting a location is of course fundamentally subject to where a company's main source of business lies. Yet a number of general requirements must be kept in mind. Access to roads, ports, airports or even dry ports must play heavy on a potential warehouse operator's mind. Growth possibilities, costs, rules and regulations share similar importance. Racking A concern ranking high for any new warehouse is that of racking. Whilst many might not think the building structure and racking design are so intricately linked, all factors of the building will affect the design of the racking system, which will in turn have a direct effect on operational criteria such as picking efficiency, cross docking and container handling. Doors A door seems a simple thought compared to the complexity of say automation or racking, but it is nevertheless a worthy consideration when designing a warehouse. Before selecting a door type, thought must be given to how much operation per day or even per hour it will function. Health and safety Like many aspects of warehouse design, health and safety considerations need to be integrated right from the start of the planning process. Safety factors initially focus on the location, anticipated function, occupancy, processes and potential hazards of a proposed warehouse. Technology A useful indicator of the need for a WMS within a warehouse operation is the volume of goods entering and leaving the premises as well as the complexity of the business - the higher the turnover the greater the need for a WMS. Automation Advantage of automation, if implementation is opted it must be involved in the design process. Like many aspects of warehouse design, optimising space is key. The column layout and height of the facility are in particular paramount to an automation solution. "It also might be that flooring needs to be built in different levels. Flooring The emphasis on warehouse flooring has undeniably increased due to modern building techniques. The quality and durability of a floor slab can affect, for good or bad, all elements of the process in a warehouse. "With many warehouse and logistics operators now taking full advantage of new technology that often requires bigger and taller buildings, the demand for a flatter floor is significantly higher.

Forklift Although very rarely would a warehouse be designed around the forklift model, a potential customer should bear in mind a number of factors that will ultimately mould the forklift selection. Aspects such as the minimum space required between aisles and turning aisles in order to accommodate for forklifts has a direct effect on racking layout. Temperature control The choice of which temperature controlled option to select is of course fundamental to the product involved. Some work on specific temperature intervals, for example pharmaceutical products require a temperature of between four to eight degrees, whilst a more common system is to set a fixed temperature restriction for an area.